Businesses worldwide are increasingly adopting artificial intelligence (AI) and generative AI to improve operations. Although no comprehensive law currently governs AI, regulators can hold businesses accountable for the use and potential misuse of this technology. To avoid any potential regulatory issues, companies need to pay careful attention to transparency and explainability in their AI systems.
Chanley Howell and Lauren Hudon, legal professionals at Foley & Lardner, call attention to the necessity for businesses to ensure their AI systems’ workings are understandable. Companies must ensure that consumers and key stakeholders are able to comprehend the decision-making processes of their AI operations. This transparency not only helps in building trust among the stakeholders but also serves as a safeguard to the regulatory risks associated with these technologies.
As AI continues to emerge and permeate various industries, the legal implications and institutional accountability surrounding it also grow. The emphasis on transparency and explainability is thereby a significant aspect of AI compliance and will remain a critical topic in future legal discussions.
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